Global healthcare firms “overspend” on cloud: report

Organisations in the healthcare industry are increasingly leaning toward adopting hybrid clouds that combine private and public cloud services, and their respective benefits, according to a recent report.

Chris Kozup, Nutanix

Nutanix’s Enterprise Cloud Index Report has revealed that the healthcare sector ranks third in the number of hybrid cloud deployments currently running, by industry. According to respondents, in just two years, healthcare providers’ hybrid cloud deployment will jump from 19 percent penetration to 37 percent. The survey also demonstrated healthcare companies report being about 40 percent over budget when it comes to public cloud spend, compared to 35 percent of cross-industry global companies.

Today, healthcare organisations need to address a variety of critical IT needs, including a need for increased security, protection of sensitive patient data and meeting regulatory compliance. Over 28 percent of healthcare respondents named security and compliance as their number one decision criterion in choosing where to run workloads. With hackers targeting medical records containing sought-after personal details like patient healthcare and insurance information, hospitals and providers require technology solutions that can handle the movement of sensitive data without risk. And, as healthcare providers also have to meet necessary security compliance for patient data, they seek out a solution that fits those specific needs.

To address ongoing security and compliance concerns, results showed the healthcare industry turning to hybrid cloud for optimum flexibility and the ability to move applications between private and public clouds. More than half of survey respondents from the healthcare industry noted inter-cloud application mobility as “essential,” further demonstrating this need for seamless movement of applications and associated data, networking services, and security policies between different types of clouds.

From a patient and clinician perspective, adopting a cloud model, hybrid or otherwise, also allows for providers to undergo a digital transformation of healthcare delivery. Infrastructure innovations allow hospitals to manage different applications and data types, take advantage of automation and create new service lines such as telehealth or remote monitoring, thus leading to improved patient engagement.

Nutanix has also found that healthcare firms that use public cloud spend 26 percent of their annual IT budget on public cloud, with this percentage set to increase to 35 percent in two years’ time. The survey demonstrated healthcare companies report being about 40 percent over budget when it comes to public cloud spend, compared to 35 percent of cross-industry global companies.

However, the report also revealed that while 88 percent of respondents believe hybrid cloud can positively impact their businesses, hybrid IT skills are scarce in the healthcare sector.

“Healthcare organisations especially need the flexibility, ease of management and security that the cloud delivers, and this need will only become more prominent as attacks on systems become more advanced, compliance regulations more stringent, and data storage needs more demanding,” said Chris Kozup, SVP of Global Marketing at Nutanix. “As our findings predict, healthcare organisations are bullish on hybrid cloud growth for their core applications and will continue to see it as the ideal solution as we usher in the next era of healthcare. With the cloud giving way to new technologies and tools such as machine learning and automation, we expect to see positive changes leading to better healthcare solutions in the long run.”

Nutanix commissioned Vanson Bourne to survey more than 2,300 IT decision makers, including 345 worldwide healthcare organisations, about where they are running their business applications today, where they plan to run them in the future, what their cloud challenges are and how their cloud initiatives stack up against other IT projects and priorities. The survey included respondents from multiple industries, business sizes and geographies in the Americas; Europe, the Middle East, Africa (EMEA); and Asia-Pacific and Japan (APJ) regions.

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